Buying a dream house or kick-starting your business, in both scenarios, getting a good location is the most crucial. One of the significant issues for entrepreneurs is picking the proper business location. Few don’t believe a good site is that important. But the fact is different. Instead of having premium products, it will not help if you sell them at the wrong place. If you’re located in the centre of nowhere, that location can even endanger your business by preventing you from generating adequate remuneration.
So, what must be a “good location”? What are those fundamental factors we should look for? Well! Let us make it easier for you.
Below listed five factors that would help you to choose your ideal location:
- Demographics, Accessible Area
- Good infrastructure
- Growth Prospect
- Resources & Costs
- Distribution network
- Demographics:
Demographics play a vital role in choosing a good business location. Always stay closer to your target customers, according to your business’s services.
For example, you have the business of selling books. That signifies your demographics should be made up of school and college students; therefore, your most suitable location needs to be within the school surroundings.
- Accessible Area, Good infrastructure
The location should be easily accessible to customers, employees, and suppliers.
Business infrastructure is essential in the same way. Suppose your business is near a busy street that is very easy to access via cars and buses; it can help your business to grow doubly. The parking issue is a total block-off for many customers. Make sure you evaluate business parking requirements well in advance.
Facilities such as security, power supply, water supply, and good road network are essential to consider while locating your industry.
- Growth Prospect
Which business person does not plan for the next ten years’ growth?
Select a business zone that permits you to boost your services as required. If a coffee cafe owner wants to expand his running business, he may eventually like to offer outdoor dining, so he needs a perfect location for expansion.
It might be the right vision to prefer the central location first. While this may be more costly than choosing a small area, it can support you save capital in the long run. Also, the size of the city or town may impact the possibility of opening more branches that grow your customer base.
- Resources & Costs
Some costs differ depending on the zone. Of course, paying rent for a location in a rural area will cost less than in a city. Ensure you evaluate the expenditure on getting “prepared for business.” Well, the rent cost is not the only thing you need to be concerned about. Indeed, there are more.
While picking a business location, you must also regard the hidden cost of doing business. Revamping, utility advancements, taxes, minimum compensation needs, and economic inducements are costs that can increase your prices or save you some cash on hand.
- Distribution network
Ponder carefully before determining a business location. If your business is manufacturing well, the availability of raw materials is an aspect you must consider while choosing the location; good closeness to suppliers is vital in reducing logistics expenses. Otherwise, sourcing and conveyance will cut down your profit margin.
Conclusion:
Selecting the right location may not only be necessary now but also for the future if you want to sell the property for a hefty amount. Also, a good location is as essential as the business services you provide and require you to dedicate as much time as possible.